The U.S. State Department is pushing back against claims that American taxpayers would finance tens of billions of dollars for a proposed redevelopment of Gaza.
The denial came after reports circulated that a $112 billion proposal drafted by figures tied to President Donald Trump’s administration would rely on the United States to cover more than half the cost of rebuilding the war-ravaged territory.
This is fake news.
Nowhere in the plan does it say the U.S. will pay $60 billion. https://t.co/yoglZ36vAI
— U.S. State Dept – Near Eastern Affairs (@StateDept_NEA) December 21, 2025
The denial followed widespread coverage of what was described as a 10-year redevelopment blueprint that would transform Gaza into a high-tech “smart city” featuring luxury resorts, high-speed rail, and advanced digital infrastructure.
The proposal, which has been reported as totaling $112 billion, was said to have been drafted by Jared Kushner, U.S. special envoy Steve Witkoff, and senior White House aides, according to reporting that cited a PowerPoint presentation shown to potential investors.
Those reports claimed the United States would shoulder $60 billion of the overall cost through grants and debt guarantees, with the remainder coming from foreign governments and private investors.
The presentation reportedly outlined phased construction and framed the effort as an opportunity to remake Gaza into a Mediterranean economic hub, while offering few details about the displacement of Gaza’s roughly 2 million residents during reconstruction.
State Department officials did not release additional details about the plan itself or clarify whether any level of U.S. financial participation was under discussion, beyond rejecting the specific $60 billion figure. It was not immediately clear whether the denial referred to the PowerPoint presentation as a whole, a specific draft, or the characterization of U.S. funding within it.
U.S. officials familiar with the proposal have reportedly expressed skepticism that the plan could move forward absent significant political and security changes, including Hamas agreeing to disarm, the Wall Street Journal reported. Gaza has been left with an estimated tens of millions of tons of rubble following years of conflict, and large-scale reconstruction would require sustained security guarantees and international coordination, according to analysts.
Witkoff has recently met with delegations from Egypt, Turkey, and Qatar to discuss next steps tied to cease-fire negotiations, though no formal reconstruction framework has been publicly adopted.
